@Balachandran, Karthikeyan you cannot directly chose the osdisk like Premium SSD or Standard HDD from aks create or terraform
you need to specify parameter --node-vm-size Standard_DS3_v2 based on this vm size it will reflect on the storage os disk
default_node_pool {
name = "default"
node_count = 1
vm_size = "Standard_D2_v2"
}
you can see the specs here
https://learn.microsoft.com/en-us/azure/virtual-machines/dv2-dsv2-series#dsv2-series
Premium Storage: Supported
related https://stackoverflow.com/questions/57094312/azure-aks-cluster-node-disk-type
Note :please mark as answer if it answer your inquiry